Apple is also tipped to remove 3D touch, only offer a single rather than dual lens rear camera and reduce RAM to 3GB — significantly less memory than other new 2018 iPhones will have.
Kuo said while these changes are needed to offer the estimated A$865 starting price, they "shouldn't have any effect on key user experience".
For those chasing a more premium device, Kuo believes Apple will release the iPhone XS and iPhone XS Plus models — the latter is tipped to have a massive 6.5-inch display, significantly bigger than the 4.7-inch display seen on last year's iPhone 8.
"We believe the major hardware difference in the two new OLED models is size, in a bid to satisfy various needs of the high-end market," he said.
Unlike his prediction for the price range of the entry-level device, Kuo didn't offer estimates for either of the predicted iPhone X models.
Kuo expects all three models to launch without any delays, given Apple's supply chain will be well experienced with iPhone X production by the time of release.
Expert analyst Daniel Ives shared the belief the company would release a larger 6.5-inch iPhone XS as there is a huge demand for large screens in China — a region in which Apple is strongly focused on increasing sales.
"Our checks indicate a 6.5-inch smartphone is on the horizon for Apple in mid-2018," he told The Sun.
Mobile expert Imran Choudhary harboured similar sentiments.
"We know from our research that consumers are steadily moving towards larger screened devices," he said.
"Given Apple can now fit a 6.5-inch screen in a much smaller device given the reduced bezel, it wouldn't be unsurprising to see this device later this year."
